MAGA Token Sell-Off Debunked as Insider Trading, Attributed to MEV Bot Activity
Recent claims of insider trading involving the politically themed MAGA memecoin have been debunked, with new evidence pointing to activity by a Maximal Extractable Value (MEV) bot rather than a human insider.
According to blockchain analysis platform Lookonchain, an alleged insider has been selling off a significant portion of the MAGA token, moving nearly 80 billion tokens for a total of 320 Ether (ETH), worth around $1.05 million.
The individual reportedly acquired 140.4 billion MAGA tokens, or 33.37% of the total supply, using 22 separate wallets for just 5.35 ETH — equivalent to about $20,000. As of the latest report, the alleged insider still holds around 60 billion MAGA tokens, valued at over $9 million.
However, new developments suggest that the sales are not the result of insider trading, but rather a series of transactions linked to MEV bot activity.
MEV Bot Activity Revealed
Blockchain researcher “Dominium” highlighted that the transactions in question show clear signs of MEV bot operations, which focus on exploiting arbitrage opportunities to generate profits. These bots are known to reorder or insert transactions to capture price discrepancies and extract value from the market.
Dominium took to social media to challenge Lookonchain’s claims, questioning why the platform did not recognize the bot-driven nature of the trades. In a direct response, Dominium wrote: “Why are you making FUD about transactions from an MEV bot? You can see it, and yet you’re calling yourself Lookonchain and missing this? I’m waiting for your reply.”
To back up their argument, Dominium shared detailed transaction breakdowns that further supported the MEV bot theory.
Community Backlash and Credibility Concerns
Lookonchain’s initial post sparked a wave of backlash from the community. Many users began questioning the platform’s credibility, as the narrative surrounding the alleged insider trading started to unravel. The controversy has since shifted the focus from the original insider trading allegations to broader concerns about market manipulation and MEV bot activity.
MAGA Token’s Rise and Market Volatility
The MAGA token, named after former U.S. President Donald Trump’s “Make America Great Again” slogan, has seen a surge in value, partly fueled by Trump’s recent pro-crypto comments. When asked if people could donate to his presidential campaign using cryptocurrencies, Trump replied, “I believe the answer is yes. If you can’t, I’ll make sure you can.”
Despite the recent surge in popularity of memecoins, the market remains highly volatile and risky. The situation was underscored by a recent exploit of the memecoin creation platform Pump.fun, which suffered a $1.9-million attack. The former employee allegedly responsible for the exploit has been arrested and released on bail in the United Kingdom.